Explanation
Background: In 2004, the City, as lessee, and The RiverSouth Authority, as lessor, entered into a Master Lease and First Supplement Lease of real property underlying the Lazarus Building on South High Street. The lease rental payments supported the issuance by RiverSouth of $37,870,000 in bonds to pay for the cost of acquisition of the former Lazarus properties and some initial improvements to the Lazarus Building. In 2005, a Second Supplemental Lease was entered into to support the issuance by RiverSouth of an additional $42,850,000 in bonds to pay for additional improvements in the RiverSouth area and for additional improvements to the Lazarus Building to accommodate new tenants including the Ohio Department of Jobs and Family Services. Current interest rates for bonds are at a level which would make it advantageous to refund the 2004 bonds and possibly the 2005 bonds. Refunding by RiverSouth at lower interest rates will be financially advantageous to the City by lowering its annual rental payments for the remaining life of the refunding bonds.
Title
To authorize the Director of Development to enter into a Third Supplemental Lease Agreement with The RiverSouth Authority in connection with the refunding of bonds issued by The RiverSouth Authority to redevelop and revitalize the RiverSouth District and the surrounding area, and to declare an emergency.
Body
WHEREAS, to further the redevelopment and revitalization of the RiverSouth Area the Columbus Downtown Development Corporation ("CDDC") petitioned this Council for the creation of The RiverSouth Authority (the "Authority") as a new community authority pursuant to Chapter 349 of the Ohio Revised Code (the "Revised Code"), and by adoption of its Resolution No. 1007-2004 on June 21, 2004, this Council approved the creation of that Authority and appointed five members of its Board of Trustees; and
WHEREAS, pursuant to Ordinance No. 1009-2004, passed by this Council on June 21, 2004, the City ...
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